Elephant Group, AfricInvest seal pact on backward integration plan in agric sector
TO further drive federal government’s backward integration initiatives on rice, crude palm oil and fertilizer supply value chain, Elephant Group has sealed a pact with AfricInvest, to achieve the objectives.
Under the agreement, AfricInvest would be providing equity investment in Elephant group in order to achieve the backward integration objectives.
Speaking at a meeting between the firms in Lagos recently, Founder/Group Managing Director, Elephant Group, Tunji Owoeye explained that the company’s deal with AfricInvest would see AfricInvest acquiring a minority equity interest in Elephant Group via issuing new shares.
A statement emanating from both parties stated that “the fund raised will be used to boost Elephant Group’s market share in agricultural commodities trading and deepen penetration of agricultural commodities exports across selected markets in Africa”.
Furthermore, it is believed that the deal would strengthen Elephant Group’s position in its backward integration initiatives in the rice, crude palm oil and fertilizer value chain.
Owoeye said: “We are excited to partner with an African-focused investor with experience in the agricultural sector. The investment will enable the company to benefit further from the federal government’s drive to promote agricultural productivity in Nigeria. It would also allow Elephant Group to transform from an indigenous agricultural commodities company in Nigeria to a vertically integrated pan-African player.
“This transaction will be the first ever private equity investment in the Nigeria agricultural commodities sector and we view it as a strong vote of confidence in the company”.
Senior Partner and Managing Director of AfricInvest in Nigeria, Abiola Ojo-Osagie said the partnership with the Elephant Group would enable her firm to take advantage of the opportunity availed investors in Nigeria’s agricultural transformation agenda.
“We have identified a company led by entrepreneurs and a management team with a good knowledge of the domestic market. Our goal is to build an enduring institution with a clear potential for growth and regional expansion”.
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